Technology plays a big role in almost every industry in today’s modern society, so it is vital that businesses keep up to date with the latest technology and trends to be able to compete at the highest level.
Enterprise resource planning (also known as ERP) is a system that helps businesses run. It will help a company organise their HR department, supply chain, finances, the list goes on. It will integrate each process into the same system. There are a variety of ERP software packages readily available, which is a big part of the digital transformation, so it is important that you choose the right software that suits your company. If you choose the wrong software, it can damage the way your business operates. These systems can cost the business a lot of money, so it is vital that they decide on software that will benefit the organisation.
There is a wide range of ERP options out there, so many people find the process of deciding on which one is right for their business overwhelming. Before investing in an ERP system, it will help to research the different software packages in depth.
Adapting to new technology can take time, and a lot of the workforce might be reluctant to take it on board. However, quality ERP systems can help bring a business to the next level.
1. Identify Your Business’s Needs
Before you start shopping for new ERP software, ask yourself what the business is hoping to get out of it. Analyse how the business operates. Are there areas within the business that need improvement, and how can an ERP system help? You should consider conducting a process review, and pinpoint the areas you want to improve. This process will help you figure out what type of software you should bring into your business.
One of the best things about this software is the majority of packages allow you to customise the different features and settings. This way you can make changes to the original software to benefit your business.
You might want to ask yourself, what is an mrp system before investing in an ERP? An ERP system is an integrated system, while an MRP is solo software. MRP stands for material requirements planning, which is a technology based system that helps people and computers within a business improve productivity and manage inventory. Although the process of setting up an MRP system is often more difficult than setting up an ERP system, it can be combined with different systems, just not as easily. Finding out what system works best for your business is crucial. Understanding any software the business is currently using will help you determine what system to buy.
2. Prepare a Budget
Before dealing with an ERP sales representative, it is best if you prepare a budget in advance. Many assume that the most expensive systems are the best and that they should employ software because of the cost, but this isn’t always the case. Finding a system that is right for your company is what you should be looking for.
There are often hidden costs and charges when it comes to ERP systems. Don’t expect the sales rep to go into great detail unless you ask. Most of the time, salespeople are just trying to get the deal over the line. Getting a clear image of what you will have to pay for down the line will help you avoid going over budget. Consider preparing a list of questions before meeting with employees working for the ERP software company, so you know exactly what to expect in the future. You might want to ask how much they charge for the following:
- Software updates and maintenance
- Will you have to invest in new hardware? Will you have to upgrade your current hardware? Can you upgrade your current hardware?
- Are there implementation costs?
By uncovering these extra changes upfront, you can accurately calculate the running costs of the system.
3. Think Long-Term
As we know, technology is constantly improving, so the last thing you want to do is spend a large sum of money on a system that is outdated shortly after you have invested in it. Although it might be compatible with your current hardware, you have to think about whether or not you will still be using it further down the line. If you are planning to update the business’s hardware in the future or change the software you are using on your current system, you will want to make sure that the ERP software you invest in will still work.
Will the system provide regular updates? A lot of ERP systems will update every so often when developers make changes. Some ERP providers update their customers’ systems for free, while others require the client pays a fee. If you have a contract that updates the system for a period of time, make sure that you have a team on board that can update the system once your contract has finished.
At the moment, there are a handful of primary ERP vendors. Don’t just select a developer because they are a well known name. To find the best fit for your business you really should consider checking out a few different systems, even if they are unheard of. Try and find a provider that will help you adapt to changes down the line.